Did FreshDirect deserve more than $100M in tax breaks and subsidies?

FreshDirect agreed to move from Long Island City, Queens, to the Bronx, thanks to generous subsidies from the city and state that total more than $100 million. New York was competing with New Jersey, which was trying to persuade the online grocer to move its facilities—and thousands of jobs—across the Hudson. Some critics complained that the subsidies were too generous. Even so, approval was swift.

There never was an offer to move. It is ludicrous to think they could move and succeed. They are not a factory producing things, they are a delivery operation with a NYC clientele. The land there we have been trying to development into 1,000 units of affordable rental housing, 100 for seniors, with 200 units of owner resided coops and open space on the waterfront for years but the lease holder refuses to work with my company. Or any developers actually. This is a serious scandal that more people need to look into. That waterfront land is very valuable, and this subsidy is a terrible investment in that property.

Why should our tax dollars pay to subsidize a corporation that
a) utilizes PUBLIC LAND
b) pays part-time workers $8 per hour
c) will bring in 140 trucks PER DAY to the neighborhood which has some of the highest asthma rates in the COUNTRY
d) is not creating new jobs right now – they are moving workers from Queens
e) bypassed ANY community feedback as Diaz fast-tracked this with no public community advisory
f) does not need FreshDirect products g) blocks community access to public land and Randall’s Island.

If you think Bronx residents deserve to be paid $8 per hour, have their air poisoned by hundreds of delivery trucks each day and disrespected by a borough president that does not fight for their health, well-being and quality of life – then support this. I think Bronx residents deserve more. Way more.

While I agree with you that we should not be subsidizing a corporation, I have to take you to task on two of your points:

b) So Fresh Direct is only paying $8.00 per hour? What do you expect them to pay? $80.00 per hour? These are low skilled part time jobs, that no one is being forced to take. Employees are voluntary, remember. And if no one shows up on recruitment day, guess what? They will have to offer more money. That’s the market.

Or would you prefer the jobs not exist at all?

c) Do you have stats to back up your claim about the “highest asthma rate in the country?” And you are making an assumption that the additional trucks alone will cause death and disease. Are you aware of the tens of thousands vehicles in NYC now? 100 more will do nothing that is not being done already.

And one further point. I think it is disingenuous of you to claim that the air of the Bronx residents will be “poisoned” simply because Fresh Direct moves to that Borough. If you were taking about some tropical oasis that has never been inhabited by humans, you might have a point.

It is common knowledge that in NYC that the Bronx has some of the highest asthma rates in the country. Since these these trucks will be going in and out of the area for more than 12 hours a day (FreshDirect delivers as early as 6am and continues until about 8pm the number of 130 trucks becomes compounded to far more than that due to multiple deliveries.

Now as far as wages are concerned, no one is asking for 80 dollars an hour so your point is well exaggerated and serves no purpose to even counter the point with legitimate facts. A fair wage would be anywhere from 11.50 to 13 which is the bare minimum needed to survive. Considering they are quite successful and profitable as well as receiving $130 million of free money it is more than feasible.

Jack, The opponents are arguing that we shouldn’t be using tax dollars to subsidize the retention of poverty-wage jobs. It is costly and inefficient—economic development resources should be directed toward the creation of jobs that lift families out of poverty. Your “that’s the market” logic is laughable under the circumstances—the company is receiving $100 million in subsidies. To use your patronizing rhetoric, Fresh Direct is voluntarily accepting the subsidy, remember. We’d be better off directing these incentives toward firms that create quality jobs or mandating that Fresh Direct improve their employment practices as a condition of receiving the subsidy.

It is well-documented that this area of the Bronx has some of the highest asthma rates in the country. Here’s a link to a City report that makes this exact claim (p.3):

There is nothing “disingenuous” about the claim that another truck-dependent facility will contribute to this problem. Perhaps you wouldn’t characterize it as “fear mongering” if there was a greater than 10 percent chance your kid would be hospitalized for asthma at some point. In any event, public policy should be used to reverse these trends, not exacerbate them.

You obviously do not read too well. The first thing I mentioned was that we should not be subsiding any corporations.

And about them contributing to the asthma. Hunts Point Market is an industrial area. It is polluted. Fresh Direct did not do that. It has happened over decades. One additional company will do nothing to hurt, nor help the situation. Would you prefer that the company move to New Jersey? Oh wait, then their polluting trucks would have to drive over bridges and tunnels to deliver their goods.

Perhaps they should go out of business? This way, no one has to get a subsidy (which I am against), nor do we need to worry about New Yorkers taking a crummy $8.00 per hour job.

By the way, what do you consider to be a “quality” job? Obviously you are against these $8.00 per hour jobs. What would you consider a job that “lifts people out of poverty?”
Perhaps if we made it easier to actually open a business in NYC, we would see more companies move or open here. Until then, all you will get is companies threatening to move and the government offering subsidies to keep the jobs here.

FreshDirect did not deserve one CENT of our funds for the simple fact that there was ZERO community input and this deal was done behind the very backs of the citizens it is alleged to help.

It was announced as a done deal 2 days BEFORE a public hearing which. A public hearing that Bronx Borough President, Ruben Diaz, Jr did not show up to to testify if he believed that it was such a good idea. Instead, Marlene Cintron, President of the Bronx Overall Economic Development Corporation came, waited to give her testimony and did not have the decency to wait and listen to the testimonies of Bronx residents and organizations.

It says that Fresh Direct will attempt to hire at least 290 Bronx people over the next 8 years to nonunion jobs. (30% of the 900+ new employees). For this nyc is giving $130 million? Sadly, it’s more than that, because the borough presidents office says in the MOU that it will work to help Fresh Direct recruit and train workers, and help find MWDBE and LBBE’s for Fresh Direct.

I guess $130 million isn’t enough for Fresh Direct to do its own share of this agreement. Now we need the do-nothing borough president’s office to get its staff to help “recruit and train” the 290 low-paid Bronx workers for Fresh Direct.

Ruben Diaz Jr. is making an embarassment of himself, completely abandoning his former supporters. He is showing that he’s now willing to do anything to kiss up to the monied interests in NYC, because he thinks this will help him run for City-wide office. It might, but all those people who will reward him for finally playing ball are laughing at him behind his back, aware that they now have mumbling, empty suit under their thumb.

This pathetic child-man is making it clear that he’s willing to throw his borough under the bus whenever it’s convenient for him to do so.

The reasons to object to this deal are numerous, from the lack of democratic process to the absence of any kind of urban planning for a site that is publicly owned and was granted a 99 year lease to the Galesi group that as previously mentioned is holding the public hostage. Public funds have been already dedicated to build a bike/pedestrian connector, but not without an easement from Galesi to Con Ed to move their electric cables. In the South Bronx, it’s still the Wild West where large companies get to use public land for company profit without a sustainable economic plan involving small businesses that circulate the profits 8-10 times more within the community than a big box store or warehouse. The South Bronx community will not allow to be held hostage for more jobs, jobs that in this case, will not guarantee a better quality of life. Plans, already exist for a multi use area with a greenway, water access, parks, playgrounds, etc. The Williamsburg site almost faced the same fate while the Bronx is faced with another Yankee stadium parking lot disaster.

It is actually about 1000 more truck trips a day. They counted only their fleet, not all the trucks, 18 wheelers, coming in with food etc, and then leaving, then the garbage tucks coming in and out and taking out their 30 tons of waste a month and then count the cars pof the workers. a disaster for the highest rate of asthma.

That states, “Bronx County has some of the highest rates of asthma in the United States. Rates of death from asthma in the Bronx are about three times higher than the national average. Hospitalization rates are about five times higher. In some neighborhoods in the Bronx it is estimated that 20% of the children have asthma.3 Within New York City the disparity in asthma hospitalization rates is very pronounced. According to a study, hospitalization rates for asthma in Bronx County and East Harlem are 21 times higher than those of affluent parts of the city.4″

It also states, ” Bronx County has the highest pediatric asthma (children 0-4 years) hospitalization rates in the New York area”.

With regards to living wages people can not survive on $8 per hour and Diaz should have fought for higher wages. He did advocate for them just last year but did not demand fair wages from Fresh Direct. Here’s his testimony about the “Fair Wages for New Yorker’s” act that he supported. http://bronxboropres.nyc.gov/press/releases/2011-11-22.html

Why are we using tax dollars to subsidize a corporation? Why did Diaz back down from requesting fair wages? Why was this not brought to the community board? Why were residents not informed of a hearing?

We need to repair and improve our environment. If you feel satisfied with the state of the environment in The Bronx, then that is fine but we SHOULD be afraid of the impact that this construction and operation will bring to our community. This will bring more waste, more congestion, more traffic, more toxic emissions. That is poison! Carbon monoxide is toxic, and if you don’t think so, park your car in your living room and leave the engine running.

” Fresh Direct move to the Bronx ” – is it worth 130 million dollars in tax benift plan ?
How many Bronx elected officials received campaign contributions to advance this project forward ? The plan does not guarantee 1000 jobs as part of their requirement to receive the funds. 130 million = 1000- you do the math. Note: Fresh Direct is basically a social program to provide service to most elite of our society, who desire not to mix with the common people in their own supermarkets. This is conceptually the same idea as the second avenue line – and we who take the MTA 6 line know what I mean- remember there is no connection to the 2nd ave line from the 6 line.

It is not proposed for the Hunt’s Point Market area, but miles away in the Port Morris neighborhood of the South Bronx. That is one inaccuracy about this issue that you are promulgating. I won’t go into the rest, since that is so glaring… Perhaps you can look into things more…

not sure what the drama is about… any business that wants to open in that area can get similar types of subsidy (but obviously they are a bigger company so the #’s look bigger). The fact that people don’t know that is pretty sad. Depressed neighborhoods have incentive packages in place to draw development.

As far as persons complaining about the wages – that is ridiculous to try to force them to pay an amount for low-skill jobs. If persons think it’s easy to run a business – they are free to start their own business and pay their employees as much as they want. Everyone wants a raise – but that doesn’t make it realistic.

If this deal is so good for the community, why was the community not consulted? They are given $130 million dollars in subsidies and they promise 1,000 (with no commitment to do so!) jobs over ten years. Do the math about how much each one of those jobs costs the rest of us. Plus the traffic. Plus, why do we keep using the South Bronx as a dumping ground for all kinds of stuff. Finally, do the people from Manhattan really want their food stored and handled a mere 322 from a toxic waste management plant? Look at the map and see. I guess that’s only that will move the lazy people who can’t afford to make a trip to the supermarket!

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